Los Angeles, CA (PRWEB) June 08, 2014
Computer database management systems (DBMSs) have a buyer power score of 3.7 out of 5. The score reflects a moderately beneficial pricing trend for buyers, with steady but slow growth in price over the three years to 2014. According to IBISWorld procurement analyst Andrew Krabeepetcharat, “Slowly rising prices are a result of the increased demand for data storage and management, as well as technological improvements in products.” Buyers have some degree of negotiating power due to the moderate profit margins that suppliers generate and the growing competition between major companies. Also, the largest suppliers of these products are large, multinational companies that have moderate profit levels, leaving room for high quantity buyers to negotiate on price.
Prices for computer DBMSs have risen at a stable rate, benefiting buyers because they are better able to plan for capital investments. Growing private investment in computers and software has increased demand for DBMSs and consequently prompted suppliers to raise prices. Also, the growing percentage of services conducted online has contributed to increased demand as businesses attempt to effectively manage more data for business operations. Despite fast growth in demand for DBMSs, prices have grown slowly due to competition among major companies. “However, buyer power is reduced due to the high market share concentration, which reduces the number of alternative suppliers that buyers can choose from,” says Krabeepetcharat.
DBMS products are also constantly undergoing change and suppliers are releasing new features each year including further integration with cloud technology. Furthermore, switching costs for buyers of DBMSs are high, which reduces buyer power because buyers need to carefully plan for purchases. A moderate level of buying lead time also reduces buyer power because the purchase of a DBMS requires extensive planning and coordination among different departments. The top four vendors in the market are Microsoft, IBM, Oracle and EMC.
For more information, visit IBISWorld’s Database Management Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of database management systems (DBMSs). Suppliers develop and distribute database management, storage and remote backup software systems. Operators may also assist in the installation and maintenance of these software systems. Suppliers also engage in the development of middleware, which acts as an intermediary between databases and business analytics software.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.